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Intro
Since my hold rating late last year, Verizon Communications Inc. (NYSE:VZ) is basically flat. I believe the stock is now a mild buy. In the below analysis, I determine that there is an abundance
Verizon: A Technical Make-Or-Break Moment Arrives (Upgrade)
Summary
- Verizon's technicals show uncertainty, but Fibonacci retracement and indicators suggest a higher probability of an upside breakout in the near term.
- Q1 earnings were decent, with revenue and EPS beating expectations, but full-year guidance points to weaker cash flow and EPS growth in the quarters to come.
- Despite a P/CF ratio above its three-year average, VZ trades at a significant discount to the sector, reflecting its mixed fundamentals.
- Given the fair valuation and upside breakout potential, I am upgrading Verizon to a mild buy, despite a neutral fundamental setup.
I'm a full-time investor with a strong focus on the tech sector. I graduated with a Bachelor of Commerce Degree with Distinction, major in Finance. I'm also a proud lifetime member of the Beta Gamma Sigma International Business Honour Society.My motto is John Pierpont Morgan's phrase: 'First-Class Business In A First-Class Way.' I strive to be a premier provider of technical analysis articles on Seeking Alpha by sharing high-quality in-depth pieces with our community of readers.My core values are: Excellence, Integrity, Transparency, & Respect. I always, to the best of my ability, hold true to these values which I believe are key for long-term success.Lastly, I would like to invite all of my readers to leave their constructive criticism and feedback in the comments section so that I can further enhance the quality of my work moving forward. Thank you and God Bless America!
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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